Accumulate Nestle India; target of Rs 21,805: KR Choksey

KR Choksey recommended accumulate rating on Nestle India with a target price of Rs 21,805 in its research report dated October 20, 2022.

Broker Research

October 20, 2022 / 22:09 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Nestle India

For Q3CY22, NEST’s revenue increased by 18.2% YoY (+13.7% QoQ) to INR 45,910 mn. The revenue growth is the highest quarterly growth witnessed in the last 5 years. Revenue in 9MCY22 increased by 14.9% YoY. EBITDA for the quarter was at INR 10,107 mn, reporting a growth of 6.6% YoY and 21.0% QoQ. EBITDA margin for Q3CY22 was at 22.0%, contracting by 240 bps YoY/ expanding by 132 bps QoQ. EBITDA margin for 9MCY22 contracted by 287 bps YoY to 22.0%. Net Profit for Q3CY22 was INR 6,683 mn (+8.3% YoY/ +29.7% QoQ). Net profit margin for Q3CY22 was 14.6%, which contracted by 134 bps YoY/ expanded by 179 bps QoQ. For 9MCY22, Net profit was stable (+ 1.1% YoY) at INR 17,784 mn.

Outlook

We apply P/E of 61.0x (unchanged) on CY24E EPS of INR 357.5 (INR 349.7 earlier) and arrive at a target price of INR 21,805 per share (INR 21,334 earlier) with an upside potential of 10.1% from the CMP. Accordingly, we maintain our “ACCUMULATE” recommendation on the shares of Nestle India.

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